NEW YORK: The Interpublic Group reported a mild rise in revenues, and cited PR as one of the holding company's strongest sectors.
For the full year of 2006, IPG's organic revenue rose 1% over 2005, to $6.19 billion total. The company posted a $31.7 million net loss for the year, better than a $262.9 million loss in 2005.
In the fourth quarter, IPG's organic revenue rose 0.4% compared to the fourth quarter of 2005, to $1.88 billion. Net income was $69.1 million in the quarter, a positive increase over a $22.9 million loss in the fourth quarter of last year.
IPG's Constituency Management Group [CMG], the division that includes the company's PR agencies, reported a 2.8% organic revenue growth in 2006, to $960.2 million.
The company reported 42% of its revenues from the "marketing services" sector, and 58% from advertising and media. Frank Mergenthaler, IPG's CFO, said the company is driving toward a 50/50 mix of revenues by discipline.
"Within CMG, every one of our units made contributions, with particular strength in PR," said IPG CEO Michael Roth in a conference call.
Mergenthaler cited "double digit organic growth rates in PR" in 2006, and noted that "domestic performance was led by PR agencies Weber Shandwick and GolinHarris."